Which One of the Following Best Describes the Primary Advantage

question 28

Multiple Choice

Which one of the following best describes the primary advantage of being a limited partner instead of a general partner?

• A)tax-free income
• B)active participation in the firm's activities
• C)no potential financial loss
• D)greater control over the business affairs of the partnership
• E)maximum loss limited to the capital invested

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Definitions:

Marginal Cost

The financial outlay for producing an additional unit of a product or service.

Public Good

A product or service that is made available to all members of a society, typically funded by the public sector, and is characterized by its non-excludability and non-rivalry.

Weather Warning System

A technology or protocol designed to alert the public of impending severe weather conditions.

Toll-free Roads

are roads for which no fee is charged for use, allowing unrestricted travel without financial cost.